Italian bank UniCredit has increased its stake in Germany's Commerzbank to 20% through the conversion of financial derivatives into shares. This move makes UniCredit the largest shareholder in the second-largest German lender.
UniCredit plans to further convert remaining derivatives, potentially increasing its ownership to 29.9%. However, exceeding 30% would trigger a formal takeover bid, which UniCredit has not yet committed to. German authorities, including Chancellor Friedrich Merz and Finance Minister Lars Klingbeil, strongly oppose a potential takeover, viewing it as hostile.
Commerzbank has announced plans to reduce its workforce by approximately 10% by 2028, potentially affecting around 3,900 jobs, to counter UniCredit's takeover efforts. The European Central Bank (ECB) has approved UniCredit's plan to increase its stake, but further regulatory approvals are required.